Investors had been lightening up on their riskier holdings ahead of the weekend’s Doha meeting. The Dow 30 closed 28.97 points down on Friday to 17,897.46 (-0.16%), the S&P 500 index was down 2.05 points to 2,080.73 (-0.10%), and the Nasdaq edged 7.67 points down to 4,938.22 (-0.16%). The meeting failed to produce an agreement to cap production, as Saudi Arabia insisted on Iran’s cooperation but the latter did not participate in the talks.
Meanwhile, futures are in the red, as traders are pricing in a worse supply glut. Dow 30 index futures for June delivery are down 95.5 points to 17,716.5 (-0.54%), S&P 500 futures are down 12.25 points to 2.062.75 (-0.59%) and Nasdaq futures are down 31 points to 4,507.50 (-0.68%). WTI crude oil is down to $39.37/barrel and Brent crude oil is down to $41.38/barrel. Gold prices are up to $1,236.20 (+0.12%) as traders are seeking safe-haven holdings.
European markets in the red ahead of ECB
A major event risk for the European markets this week is the European Central Bank’s interest rate decision. Although the ECB already expanded their easing program in their previous announcement and isn’t expected to add to their stimulus this time, the minutes of their earlier meeting indicate that there’s still scope for lower interest rates if necessary.
German DAX futures are down 49.5 points to 10,072.0 (-0.49%), French CAC 40 futures are down 26.7 points to 4,410.8 (-0.60%), and Euro Stoxx 50 futures are down 11 points to 2,977.0 (-0.37%). In the United Kingdom, the Bank of England announced that one of its hawkish members, Martin Weale, will soon step down and be replaced by a more dovish policymaker. London FTSE futures are down 44 points to 6,238.5 (-0.70%).
Asian markets react to Doha meeting, Japan earthquake
Risk appetite remains weak in today’s Asian trading session, with most indices in the red. Japanese markets are still reeling from the aftermath of the earthquakes, as the Nikkei is down 505.30 points to 16,342.25 (-3.03%) and the S&P ASX 200 is down 14.59 points to 5,143.00 (-0.28%). The China A50 index is down 61.09 points to 9,661.64 (-0.63%) and the Hang Seng is down 227.47 points to 21,089.00 (-1.07%).
Meanwhile, earnings data from the US could continue to affect overall market sentiment and the results have been mixed so far. Citigroup and JPMorgan earnings beat expectations while this week has reports from McDonald’s, Netflix, Morgan Stanley, Goldman Sachs, Yahoo!, and Coca-Cola.
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